InterDigital settles patent disputes with Samsung
By Louise Turner
Companies come to a compromise on Samsung's 2G and 3G products
InterDigital Communications and its patent licensing subsidiaries have entered into a binding term sheet with Samsung Electronics and its affiliates, including Samsung Electronics America, which resolves the outstanding arbitration issues involving Samsung's sale of 2G products, as well as the 3G patent licensing disputes for Samsung's sales of products through 2012.
Under the terms of the term sheet, InterDigital agreed to grant Samsung a royalty-bearing license covering Samsung's sale of all 3G products (including products built under both the WCDMA and CDMA2000 standards and their related extensions) through 2012. The agreement also ended the payment disputes regarding Samsung's royalty obligations for sales of 2G products.
According to the term sheet, Samsung has approximately 45 days to elect between two defined payment options, and the term sheet contemplates the parties will enter into agreements incorporating the terms of the term sheet. Subject to Samsung's selection of a payment option and payment of the first installment of payments due in early 2009, the parties are expected to move to end all litigations and arbitration proceedings ongoing between them.
William Merritt, president and CEO of InterDigital, said: "I am extremely pleased that we have reached a favorable agreement with Samsung to end this longstanding dispute. The agreement is consistent with our long term strategic plan, and reflects well on the strength of our patent portfolio and our ability to design flexible deal structures."